We recommend using the 4W’s as a method of digging in to better understand the operations of a business. This concept is not new and sounds simple but is often not utilized appropriately.
The 4W’s concept can be used as the building blocks with a focus at all stages of operations when considering risk management. Here’s the problem; while every department head is very knowledgeable about their individual expertise it can be difficult if not overwhelming to think about it from the wide-ranging standpoint of risk.
“Digging In” – By using these four basic questions you can gather a wealth of knowledge about your business; the trick is to do this at the various stages of operation and not just the top-level thus coordination is important.
This valuable approach is overlooked and many times in Premier’s early analysis we find that businesses are generalized by the insurance industry and brokers. There is a lack of special attention to the individual company beyond “what is your business”.
This generalization becomes the cracks in the foundation … by doing these analyses you can better understand what risk you are accepting, how to transfer the risk, and/or mitigate the risk. While accepting risk is easy, when it comes to transferring risk most companies are unsure, and mitigating risk falls through the cracks because companies don’t know how to ask the right questions or utilize the services available.
After Premier “Digs In” we helps you better understand what risk to accept or transfer, ultimately we focus on mitigating risk. Imagine speaking to the insurance industry no longer being generalized but having a wealth of understanding. Not only will you be better prepared internally but since you are appropriately addressing risk this practice will result in lower premiums and lower total cost of risk. It’s a Win – Win.